Vaulta, once known as EOS, is redefining its journey with a renewed commitment to practical finance and compliance-first blockchain infrastructure. Recently, Vaulta announced its partnership with VirgoCX, resulting in the launch of VirgoPay, a transformative cross-border remittance application that utilizes stablecoins to significantly reduce transaction fees and enhance speed.
This innovative service positions Vaulta as the default settlement layer, delivering near-instant payments across various jurisdictions, starting with markets like the United States, Canada, Brazil, and Hong Kong. In this article, we delve into an enlightening Q&A with Yves La Rose, Founder and CEO of Vaulta, to uncover the unique aspects of Vaulta’s architecture, governance upgrades, and the financial tools that distinguish it from its predecessors.
Historically, EOS faced criticism due to validator collusion and governance shortcomings. Vaulta has implemented significant changes to ensure transparency and decentralization. The community’s establishment of the EOS Network Foundation (now the Vaulta Foundation) in 2021 plays a crucial role in driving development and uniting efforts to promote technical advancements, marketing, and infrastructure projects.
- New Consensus Model: With the rebranding to Vaulta, the network adopted a next-generation consensus model that distributes core algorithms further. This aims to mitigate previous governance issues by redistributing validation roles among more participants.
- Token-holder Voting: While the community can propose code changes, actual decisions rest with token-holder votes, promoting effective decentralized governance.
VirgoPay primarily relies on USDC and USDT, raising important questions about what happens if a stablecoin depegs or faces freezing issues. While Vaulta serves as the settlement layer, it acknowledges that using centralized stablecoins inherently carries macro risks.
Vaulta addresses these concerns by offering flexibility in stablecoin integration, supporting both Tether (USDT) natively and USDC through its Bitcoin transport layer, exSat. Developers can swiftly switch between stablecoins in adverse conditions, ensuring that users are not heavily impacted by fluctuations in a single stablecoin’s value.
With expansions planned in regions with stringent regulations like Canada, Argentina, and Brazil, Vaulta prioritizes compliance through its local partnerships. The VirgoPay platform is committed to adhering to KYC, AML, and national licensing laws. By collaborating with local financial institutions, Vaulta ensures that its applications meet regional requirements, all while maintaining the usability and permissionless nature of the underlying blockchain.
As the network gears up for a phased launch, VirgoPay is prepared to establish partnerships in every new market, addressing compliance intricacies while striving for global scalability. This strategy facilitates the offering of essential remittance services that aid financial inclusion and reduce costs for users.
In a crowded market where alternatives like Ripple and Stellar dominate, Vaulta differentiates itself by evolving into a comprehensive Web3 Banking OS. This encompassing framework allows for innovative solutions beyond mere stablecoin payments, offering advanced features like lending, escrow, and compliance modules, catering to diverse financial needs.
Vaulta invites institutions to develop applications atop its infrastructure, reflecting a commitment to flexibility and creativity in financial services. As Vaulta transforms, its aspirations extend well beyond the realm of remittances, positioning itself as a leader in the future of banking tech.
